Ceteris paribus, or "all other things held constant", is an assumption that had which of the following effects on a demand schedule?
a) It takes only prices into account
b) It considers the effects of all possible changes on demand
c) It is accurate no matter what changes occur
d) It is accurate at only one price level
Ans: a) It takes only prices into account
You might also like to view...
One motive for “battling the invisible hand” is
A. unhappiness about the prices that occur in free markets. B. envy toward those who apparently benefit from certain prices. C. a desire to have government “correct” some problems. D. an attempt to produce justice between buyers and sellers. E. All of these responses are correct.
The value of any business is largely determined by the size of the dividend it pays its shareholders
Indicate whether the statement is true or false
The equation illustrating leakages equal injections in an economy would be:
a. I + S + NT = G + S b. G + S = C + I + X c. S + NT + M = I + G + X d. I + G + X = Rent + Wages + Profits + Interest
If labor supply of unskilled workers is perfectly inelastic, then
A. the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. B. firms face an increasing marginal cost of hiring unskilled labor. C. firms face a horizontal value of marginal product of employment curve. D. workers will supply more hours of labor to the market when wages increase. E. the labor supply curve of unskilled workers is horizontal at the market-clearing wage.